Prime Minister Narendra Modi’s claim that several States, including Telangana, did not agree to the Central government’s request to reduce value added tax (VAT) on petroleum products for some reason or the other has triggered yet another war of words between the State government and the BJP-led Centre.
The Prime Minister went ahead to say that seven States, including Telangana, are seen to have pocketed around ₹12,000 crore between November and March last fiscal, with Telangana accounting for around ₹1,450 crore of it.
Adding fuel to the fire was a tweet by Union Minister Hardeep Singh Puri who pointed out the “curious” case of Telangana. The State imposes one of the highest VAT on petrol and diesel – 35.2% on petrol and 27% on diesel. “The State government has collected ₹56,020 crore as VAT from 2014 to 2021. Projected to mop up ₹13,315 crore in 2021-22. Adds up to a huge ₹69,334 crore. Where has it gone?” the Union Minister tweeted.
